UPDATE: Canaccord Genuity Downgrades PayPal (PYPL) to Hold
- Wall Street dragged down by Apple, health stocks
- Some Deutsche Bank (DB) Clients Said to Reduce Collateral on Trades
- Qualcomm (QCOM) in Talks to Acquire NXP Semiconductors (NXPI) - DJ
- Unusual 11 Mid-Day Movers 9/29: (ITCI) (ADHD) (MRNS) Higher; (CATB) (AEGR) (DRNA) Lower
- After Near-Term Outperformance, Barclays Sees Apple (AAPL) Shares Flat from Here
Get access to the best calls on Wall Street with StreetInsider.com's Ratings Insider Elite. Get your Free Trial here.
(Updated - September 19, 2016 11:05 AM EDT)
Canaccord Genuity downgraded PayPal (NASDAQ: PYPL) from Buy to Hold with a price target of $40.00 (from $45.00). Analyst Michael Graham thinks shares reflect TPV strength.
The analyst explained, "After a sharp decline following news of the Visa deal in July, PayPal's stock is up ~9% off of lows. We are optimistic regarding TPV growth in the near term, but we believe the factors driving this (One Touch, Venmo) are well understood and largely reflected in estimates. Meanwhile, higher funding mix-driven transaction expenses stemming from the V and MA deals are likely to pressure margins and temper EPS growth modestly. Longer term, we see a balance of factors (offline volume potential, competition from Apple & Android Pay) that should keep TPV growth on a path of gentle deceleration. With the multiple now at a less attractive level and the possibility of pressure on EPS estimates from 2017-2020, we believe shares are fully valued at current levels; therefore, we downgrade to HOLD."
Shares of PayPal closed at $40.70 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- UPDATE: Stifel Downgrades Targa Resources (TRGP) to Hold
- UPDATE: Morgan Stanley Downgrades Shopify (SHOP) to Equalweight Following Recent Gains
- UPDATE: Stifel Upgrades Bonanza Creek Energy (BCEI) to Hold
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS View, Analyst PT Change, Downgrades
Related EntitiesCanaccord Genuity
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!